BSD, Property Company Owned By Conglomerate Eka Tjipta Widjaja This Profits Drop 89 Percent In 2020

The late conglomerate Eka Tjipta Widjaja. (Photo: Doc. Forbes)

JAKARTA - Property developer, PT Bumi Serpong Damai Tbk (BSD) recorded an unsatisfactory performance in 2020. The company, codenamed BSDE, experienced a contraction in revenue and net profit.

Quoted from the BSD financial report, Wednesday, March 31, this property company owned by the late conglomerate Eka Tjipta Widjaja posted revenues of IDR 6.18 trillion in 2020. This figure has decreased by 12.71 percent on an annual basis (year on year / yoy) compared to 2019 revenue of IDR 6.18 trillion. IDR 7.08 trillion.

In terms of net profit, BSD was under pressure and fell quite deeply, namely 89.9 percent yoy. As a result, the profit of the company of the second richest person in Indonesia shrank to IDR 281.7 billion in 2020, compared to IDR 2.79 trillion in 2019.

The cause of the drop in net profit was mainly due to an increase in interest and other financial expenses from Rp 1.04 trillion to Rp 1.78 trillion. This company from the Sinar Mas Group also recorded a net loss of equity in associates and joint ventures amounting to Rp527.61 billion.

In terms of liabilities, BSDE has liabilities of IDR 26.39 trillion. The short-term liabilities amounted to IDR 11.96 trillion and IDR 14.43 trillion long-term liabilities. Meanwhile, equity was recorded at IDR 34.47 trillion.

In the cash post, at the end of the year, BSD has cash of Rp. 10.91 trillion. Meanwhile, net cash from operating activities amounted to Rp1.46 trillion and from financing activities amounted to Rp.3.31 trillion.

On the other hand, BSD used cash for investment of Rp1.01 trillion. Actually, the cash position at the end of the year BSD increased from the position at the beginning of the year which amounted to Rp 6.86 trillion.

For information only, BSD posted pre-sales or marketing sales revenue of IDR 6.5 trillion in 2020. Even though this achievement was not on target, BSD was still able to seize opportunities amid the impact of the COVID-19 pandemic to the property business.

Achievement of marketing sales of IDR 6.5 trillion, equivalent to 90.27 percent of the target set at IDR 7.2 trillion. Bumi Serpong Damai Director Hermawan Wijaya explained that the achievement was supported by the increase in demand for the company's property products at the end of the year.

"The high consumer interest can be seen from the high pre-sale rate for the last three months of 2020," said Hermawan as quoted from the disclosure of information on the Indonesia Stock Exchange (IDX) website, Tuesday, February 9.